Borrowing Strategy: The Role of GDP-Linked Bonds Preloader

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What is a GDP-Linked Bond?. A bond that promises to pay a return (in addition to amortization) that varies with the behavior of GDPTwo versions:Value of the instrument depends on the value of GDP (Shiller)Return varies with the growth rate of real GDP (Borensztein and Mauro). Outline of Lecture.

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Borrowing Strategy: The Role of GDP-Linked Bonds


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